Even when you go to connect new device?Kind of odd that there's no option in my Watch Airplay options to play to my HomePod
yep. nothing there except for my airpods.Even when you go to connect new device?
The AW is not listed as an Airplay device in this Apple support page
https://support.apple.com/en-us/ht202809
However you can control music playing on your iPhone from AW and your iPhone can output to a Homepod on the same wifi, using Airplay:
https://theapplewatchtriathlete.com/blog-1/2018/2/11/using-apple-watch-to-control-homepod
The Homepod does not have Bluetooth and so can only talk to other devices with Airplay, which is not (currently) available on the AW